Pret owners in discussions for IPO or possible sale
Pret’s parent company JAB Holding has engaged advisors to explore options for the sandwich chain, which include a potential sale or stock market float.
Luxembourg-based JAB, which bought Pret for £1.5bn in 2018, told the Financial Times that it was not “currently” considering a sale, but added: “As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor”.
Despite high demand for its products, Pret has struggled with a number of shocks since 2018.
It had a bruising few years during the pandemic – its operating loss slumped to £343m in 2020 – and is now struggling with financial pressure from higher wage costs.
The company has relied on a revamped coffee subscription service to pull customers in from cheaper offerings like Greggs, but has been hit with backlash around attempts to raise prices.
Last year, it attempted to double the price of its monthly coffee subscription to £10, but customer dissatisfaction forced it to roll back the change.
Pret’s sales rose by a fifth to £1.1bn in 2023, while adjusted core profit increased 12 per cent to £166m – mainly due to a heavy push into international markets.
While it still mostly operates in the UK – and a third of all its stores are in London – Pret is now open for business in 18 markets.
It plans to open 10 new shops on the east coast of the US by 2026, with New York its “overseas capital”.
The company’s chief executive Pano Christou said that £1 in every £4 spent at Pret was spent outside the UK last year.
“I… look forward to taking Pret to even more people, in more places, next year,” Christou said.
Pret’s outstanding loans and borrowings were £740m at the end of 2023, according to Companies House, although it raised £250m of capital last year.